Walmart Wants To Be A Bigger Online-Shopping Hub

Why Walmart Is Partnering With This Luxury Brand

Update: Lord & Taylor is officially expected to launch a flagship store on Walmart.com in spring 2018, according to a rep for the brands. It promises to be "a specialized online experience offering premium fashion brands."

This story was originally published on October 20.

In an effort to become a bigger online-shopping destination and rival Amazon, Walmart is planning to partner with Lord & Taylor by giving the luxury department store space on its website, sources told The Wall Street Journal.

You might be wondering why the big-box store is teaming up with the oldest luxury department brand in the U.S., known for its designer bags and special-occasion dresses. The Journal reported that this deal is likely an initial step in creating a larger online-shopping hub, which could also house men's clothing brand Bonobos and online retailer Jet.com. During the past 15 month, Walmart has bought Bonobos, Jet.com, and ModCloth.

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Meanwhile, Amazon is continuing to court brands like Nike, which currently sells some products directly through the retailer — and is also looking to develop its own brand of athletic wear, according to Fortune.

Lord & Taylor was founded in 1826 and has 50 locations, mostly in upscale areas. The reported partnership could potentially include customers being able to pick up their Lord & Taylor orders at Walmart.

Time reported that in January, Walmart introduced a free two-day delivery service for orders $35 and over in order to compete with Amazon Prime's free two-day shipping program, which is offered through its $99 annual membership. In response, Amazon knocked down its free-shipping minimum for non-Prime members to $25.